German bunds climb after Eurozone March CPI meets consensus estimates, unemployment falls

The German bunds climbed Wednesday after eurozone’s consumer price inflation (CPI), for the month of March met market expectations, albeit rising in comparison to the previous reading in February. Also, the bloc’s jobless rate for the similar period fell, adding value to debt prices.

The German 10-year bond yields, which move inversely to its price, slid 1 basis point to 0.49 percent, the yield on 30-year note also fell 1 basis point to 1.14 percent and the yield on short-term 2-year too traded 1 basis point lower at -0.58 percent by 09:50GMT.

Eurozone inflation picked in March, while the bloc’s unemployment rate fell to its lowest level since 2008 in February, according to data released on Wednesday that mark positive developments for European Central Bank policymakers. Euro area unemployment rate clocked in at 8.5 percent in February, down from 8.6 percent in the previous month and 9.5 percent in February 2017.

Consumer prices rose 1.4 percent in March compared with the same month in 2017 according to Eurostat, the bloc’s statistics agency. The rate matched expectations of economists in a Reuters poll and was stronger than the 1.1 percent recorded in February, Financial Times reported.

Meanwhile, the German DAX slumped 1.24 percent to 11,854.12 by 09:50GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -73.86 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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